Hudson’s Bay, Canada’s oldest retailer, is reportedly set to lay off more than 8,300 of its employees by Sunday as it permanently closes all 96 of its stores.
The Canadian company filed a motion Monday evening stating that it will be terminating 89 per cent of its staff once it finalizes the last week of its liquidation process on June 1, according to media reports.
The move follows the brand filing for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) in March, failing to secure sufficient financial backing to restructure and maintain its retailing operations.
Meanwhile, a small number of employees will continue as part of the company’s workforce to assist with furniture sales and closing procedures for remaining locations.
As the retailers’ distribution centre closes on June 15, nearly 900 employees are expected to experience layoffs, and almost 120 workers will go on to help the company conduct its obligations, according to media reports.
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Whether employees will be eligible to apply for benefits under WEPP will be determined by a court order, with variations in wages to be expected.
The closures include 80 Hudson’s Bay stores, 13 Saks Off 5th locations, and three Saks Fifth outlets across the country. Only six stores, three in Ontario and three in Quebec, remain open for final liquidation sales.
Canadian Tire, another one of Canada’s major retailers, announced a $30 million payout to take over Hudson’s Bay intellectual property earlier in May.
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For over 350 years, the Hudson’s Bay company has maintained its significance in Canadian history and retail. The closure marks the end of an era for a staple Canadian retailer of antiquated history.
